Freyman's Shoe Store Had Net Retail Sales of $200,000 During

question 136

Essay

Freyman's Shoe Store had net retail sales of $200,000 during the current year.The following additional information was obtained from the accounting records.
$\begin{array}{lrr}&\text { At Cost}&\text { At Retail}\\ \text { Beginning inventory } & \$ 30,000 & \$ 63,000 \\\text { Net purchases for the period } & 89,000 & 193,000 \\\text { Freight-in } & 9,000 &\end{array}$
Estimate the company's ending inventory at cost using the retail method.(Show your work.)

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Definitions:

SSE

Sum of Squared Errors, which measures the total deviation of response values from the fit values in statistical models.

SST

Sum of Squares Total, a statistical measure that represents the total variance in a dataset.

Correlation Coefficient

A statistical measure that describes the extent of the linear relationship between two variables, ranging from -1 to 1.

Linear Relationship

A relationship between two variables where the change in one variable is directly proportional to the change in another.